SAO PAULO, Aug. 11, 2016 /PRNewswire/ -- Eternit S.A. (BM&FBOVESPA: ETER3) announced its results for the 2Q16.
The construction materials industry ended the second quarter of 2016 with a weak performance, according to the Brazilian Construction Materials Industry Association (ABRAMAT).
Though this is a period of seasonally lower demand for the Company, apart from the contraction in the segment, Eternit posted negative results, yet outperforming the industry,
Chrysotile sales volume in 2Q16 amounted to 47,600 tons, decreasing 28.7% from 2Q15, due to the reduction in the inventories of clients of the mining company and in the construction materials sector, as well as the competitiveness of steel roofing panels in Asia and strong competition in the export market. In the same period, fiber-cement sales reached 181,000 tons, down 3.0% from 2Q15, whereas concrete roofing tile sales decreased 9.0%, mainly due to the industry slowdown, higher unemployment, lower household income and credit restrictions.
Consolidated net revenue in 2Q16 totaled R$203.7 million, down 13.8% from 2Q15, due to the decrease in volume sold and the price in U.S. dollar on chrysotile exports, which was partially offset by the 14.1% appreciation of the U.S. dollar against the Brazilian real due to chrysotile exports.
Adjusted EBITDA reached R$10.6 million in 2Q16, down 75.6%, due to the decline in operating margins on account of a sales mix with lower added value, lower sales volume, low utilization of operating capacity and a non-recurring increase in operating expenses due to the payment of court fees related to the filing of an appeal against the Public-Interest Civil Actions filed in Sao Paulo by the Labor Prosecution Office and ABREA, despite the Company's efforts to reduce operating expenses.
In view of the aspects mentioned in the Adjusted EBITDA section, in addition to a higher net financial expense resulting from the effects of net exchange variation on the Group's foreign-denominated operations, the higher interest resulting from debt and the lower returns on investments due to lower cash available, net loss was R$9.0 million in 2Q16.
Capex totaled R$3.9 million in 2Q16, declining 69.7% from 2Q15, and was allocated to maintaining and modernizing the Group's industrial facilities.
Time: 11.00 a.m. Brazilian Local Time – 10.00 a.m. New York – 03.00 p.m. London
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SOURCE Eternit S.A.